Indian rupee concluded substantially weaker against dollar on account of continued dollar demand from importers and banks. Sentiments remained fragile as Indian manufacturing activity declined in the month of July, as demand conditions remained subdued with some businesses still closed amid lockdown extensions. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance fell to 46 in July as against 47.2 in June. Besides, losses in the local equity markets combined with disappointing quarterly earnings by some blue- chip companies also dampened sentiments. On the global front, dollar rallied against a basket of rivals on Monday as a squeezing out of crowded short positions combined with safe-haven demand gave the currency some respite after its worst monthly performance in a decade.
Finally, the rupee ended at 75.01, 20 paise weaker from its previous close of 74.81 on Friday. The currency touched a high and low of 75.03 and 74.88 respectively. The reference rate for the dollar stood at 74.77 and for Euro stood at 88.87 on July 31, 2020. While the reference rate for the Yen stood at 71.64, the reference rate for the Great Britain Pound (GBP) stood at 98.17.
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